Small business disaster loan program is out of money until new funds are approved

A house, center, lies toppled off its stilts after the passage of Hurricane Milton, alongside an empty lot where a home was swept away by Hurricane Helene, in Bradenton Beach on Anna Maria Island, Fla.The Small Business Administration’s disaster loan program has run out of money, it announced on Tuesday, after warnings that funding would soon run out following increased demand from hurricanes Helene and Milton.

The SBA said that their loan application portal remains open, SBA’s disaster centers and in-person staff remain deployed across the country, and the agency will continue to accept new applications and ready borrowers to get their disaster loan offers as soon as possible once Congress appropriates funds. The program needs about $1.6 billion for the current fiscal year.

SBA Administrator Isabel Casillas Guzman said on Tuesday:"While we await Congress to provide much-needed funding, we strongly encourage eligible businesses and households to apply for SBA disaster loans. SBA will continue to support homeowners, renters, businesses and nonprofits in processing their applications to ensure they receive assistance quickly once funds are replenished."

The SBA is currently supporting eligible applicants in 173 disaster declarations. Applications in the queue will receive loan offers after additional funding from Congress becomes available, and will be processed in the order in which they were received. The SBA also said that during this period, it will issue declines for new applicants who do not meet eligibility or underwriting criteria for a loan.

SBA can make disaster loans up to $500,000 to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters may be eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property. Businesses may be eligible for loans up to $2 million for both physical damage and economic injury from business disruption.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Biden says small business disaster loan program will soon run out of moneyPresident Biden says Congress needs to shore up a small business disaster loans fund, and fast. Meanwhile, the response to Hurricane Helene has become a presidential election issue.
Source: NPR - 🏆 96. / 63 Read more »

Small business disaster loan program is out of money until Congress approves new fundsThe SBA is pausing new loan offers until it gets more funding, which means loans that have not already been offered will be delayed by at least a month.
Source: adndotcom - 🏆 293. / 63 Read more »